Mutual interdependence means that each firm in an oligopoly
A. depends on the other firms for its markets.
B. considers the reactions of its rivals when it determines its pricing policy.
C. faces a perfectly inelastic demand for its product.
D. depends on the other firms for its inputs.
Answer: B
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What type of relationship does the law of demand demonstrate?
A) direct B) positive C) inverse D) static
To protect the competitive economic system by restricting the formation of monopolies, the government has passed and enforced
A) regulatory laws. B) antitrust laws. C) tort laws. D) zoning laws.
Which of the following is an example of an unintended consequence?
a. first time tax credits that cause more home sales b. a price ceiling on gasoline that causes a gas shortage and leads some gas stations to go out of business. c. increased parking fines that lead to fewer violators d. all of the above
During the recession of 2007-2009, the Federal Reserve began cutting its target for the Federal Funds rate in
A. September of 2007. B. September of 2008. C. January of 2009. D. January of 2007.